Gleason added that the bank believes it is in the “late stages” of the commercial real estate cycle and pointed to what he described as “green shoots” in leasing and property sales, an increase in refinancing activity amid improving sector liquidity, and relief from Federal Reserve rate cuts. He said the company sees 2026 as a year of continued work-through, while expressing optimism about 2027.Chairman and CEO George Gleason said management expects 2026 results to resemble 2024 and 2025 in several respects ...

Financial Data and Key Metrics Changes - In Q1 2026, the company originated $29.6 million in loans held for investment, a 1% increase from $29.4 million in the previous quarter [5] - Loan principal payments and payoffs decreased by 18% to $34.5 million from $42 million in the previous quarter [5] - Nonperforming assets increased to $1.9 million from $1.4 million in the previous quarter [6] - The allowance for credit losses to gross loans held for investment decreased to 56 basis points from 62 basis points [7] - Net interest margin increased by six basis points to 3% compared to 2.94% in the previous quarter [8] Business Line Data and Key Metrics Changes - Loans held for investment decreased by approximately $4 million, with declines in multifamily and commercial real estate loans, partially offset by an increase in single-family loans [6] - The weighted average rate of loans originated in September was 6.62%, compared to 5.2% for loans held for investment as of September 30, 2025 [9] Market Data and Key Metrics Changes - The company has approximately $107 million of loans repricing in December, expected to increase to a weighted average interest rate of 6.89% [10] - The average cost of deposits increased to 1.34%, while the cost of borrowing also increased to 4.59% [9] Company Strategy and Development Direction - The company is focusing on prudent adjustments to underwriting requirements to encourage higher loan origination volume [6] - The short-term strategy for balance sheet management is more growth-oriented than the previous fiscal year, with a disciplined loan growth approach [12] - The company aims to maintain cash dividends and has repurchased approximately 67,000 shares of common stock [13] Management's Comments on Operating Environment and Future Outlook - Management noted that real estate investors remain cautious due to market uncertainties, although there has been an increase in activity as mortgage interest rates decline [5] - The company expects modest or moderate net interest margin expansion in the upcoming quarters [20] - Management is optimistic about the potential for refinance activity due to declining mortgage interest rates [16] Other Important Information - Operating expenses remained unchanged at $7.6 million, representing a normalized run rate [12] - The company distributed $921,000 in cash dividends and repurchased approximately $1.1 million worth of common stock in the first quarter [14] Q&A Session Summary Question: Challenges in loan growth trajectory for 2026 - Management acknowledged hesitancy among borrowers in multifamily and commercial real estate due to higher mortgage rates, but noted that declining rates could present more opportunities [16] Question: Expectation for margin expansion - Management indicated that it is reasonable to expect margin expansion similar to the previous quarter, citing a growth in net interest margin from 2.74% to 3% over the past year [20] Question: Impact of lower interest rates on loan portfolio - Management explained that lower interest rates could lead to increased refinance activity, shortening the average life of the loan portfolio and potentially impacting credit loss provisions [22][24]

Core Insights - Sound Financial Bancorp reported a net income of $1.7 million for Q3 2025, a decrease from $2.1 million in Q2 2025 and an increase from $1.2 million in Q3 2024, with diluted earnings per share of $0.66 [1] - The Board of Directors declared a cash dividend of $0.19 per share, payable on November 21, 2025 [1] Financial Performance - Total assets increased by $1.9 million or 0.2% to $1.06 billion at September 30, 2025, but decreased by $40.8 million or 3.7% from $1.10 billion at September 30, 2024 [5] - Loans held-for-portfolio increased by $5.4 million or 0.6% to $909.7 million at September 30, 2025, compared to $901.7 million at September 30, 2024 [5][35] - Total deposits decreased by $516 thousand or 0.1% to $898.9 million at September 30, 2025, and decreased by $31.3 million or 3.4% from $930.2 million at September 30, 2024 [6][40] Interest Income and Expenses - Net interest income decreased by $315 thousand or 3.4% to $8.9 million for Q3 2025, but increased by $1.1 million or 13.6% from $7.9 million in Q3 2024 [7][12] - The net interest margin was 3.48% for Q3 2025, down from 3.67% in Q2 2025 and up from 2.98% in Q3 2024 [8] - Interest expense increased by $52 thousand or 0.9% to $5.7 million for Q3 2025, compared to Q2 2025 [16] Credit Quality - Total nonperforming loans decreased by $649 thousand or 19.3% to $2.7 million at September 30, 2025, compared to the previous quarter [7] - A provision for credit losses of $55 thousand was recorded for Q3 2025, down from $170 thousand in Q2 2025 [9][17] - The allowance for credit losses on loans to total loans outstanding was 0.94% at September 30, 2025, compared to 0.95% at September 30, 2024 [9][37] Noninterest Income and Expenses - Total noninterest income decreased by $239 thousand or 21.3% to $881 thousand for Q3 2025, compared to Q2 2025 [10][24] - Noninterest expense remained stable at $7.7 million for Q3 2025, with slight fluctuations in specific categories [28][30] Capital Management - Stockholders' equity totaled $107.5 million at September 30, 2025, an increase of $1.4 million or 1.4% from the previous quarter [42] - The company maintained capital levels in excess of regulatory requirements and was categorized as "well-capitalized" at September 30, 2025 [11]

Financial Data and Key Metrics Changes - Hilltop reported net income of approximately $36 million or $0.57 per diluted share, with a return on average assets of 1% and return on average equity of 6.6% [4] - The net interest margin increased by 19 basis points, while the blended cost of deposits declined by 9 basis points [5][6] - Net interest income for the second quarter was $110.7 million, reflecting a year-over-year increase of 7% [14][17] - The allowance for credit losses declined by $8.2 million to $98 million, with net charge-offs of approximately $900,000 [15][16] Business Line Data and Key Metrics Changes - PlainsCapital Bank generated $55 million of pretax income on average assets of $12.7 billion, resulting in a return on average assets of 1.35% [5] - PrimeLending reported a pretax gain of $3 million, including a nonrecurring legal settlement of $9.5 million [9] - Hilltop Securities generated pretax income of $6 million on net revenues of $110 million, with public finance services seeing a 36% year-over-year increase in net revenues [11] Market Data and Key Metrics Changes - Average total deposits at PlainsCapital declined during the quarter, reflecting normal seasonal flows related to tax payments and distributions [18] - Core deposits increased by approximately $275 million year-over-year [8] - Mortgage revenues declined by $12 million, driven by lower valuation marks on the pipeline and lower loan origination fees [20] Company Strategy and Development Direction - The company aims to return its mortgage business to profitability while managing deposit costs and expanding lending activity [24] - Hilltop continues to focus on prudent growth of revenue producers while gaining efficiency across middle and back office functions [21] - The company anticipates ongoing activity in M&A, looking for cash-type deals due to trading at a discount on a tangible book value basis [51] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the work being done to support customers and communities, despite uncertainties in the market regarding interest rates and inflation [24] - The outlook for 2025 reflects the current assessment of the economy and market conditions, with adjustments expected as the market changes [25] - The company expects to recapture a material portion of deposits in the second half of 2025 as seasonal inflows occur [7] Other Important Information - The company returned over $46 million to stockholders through dividends and share repurchases during the quarter [5] - The tangible book value per share increased by $0.54 to $30.56 [13] Q&A Session Summary Question: Regarding the broker dealer business and elevated efficiency ratio - Management indicated that the elevated efficiency ratio is largely a reflection of the revenue mix, with public finance services up and structured finance flat to down [27][28] Question: On fixed expense guidance and incremental expense outlook - Management noted ongoing inflation in personnel and software expenses as drivers for the increased expense outlook [30] Question: About the net interest margin and deposit beta - Management highlighted improvements in analytic capabilities and a more rational marketplace as factors contributing to a higher than expected deposit beta [31][32] Question: On loan growth and competition - Management discussed strong pipelines and the impact of competition on loan growth, indicating that it will take time to fund commitments [36][41] Question: On capital management and share repurchases - Management expressed satisfaction with share repurchases and indicated plans to continue this strategy, while also evaluating M&A opportunities [50][51] Question: About credit improvements and classified loans - Management attributed improvements in classified loans to pay downs and effective workout activities by the credit team [53] Question: On deposit costs and outflows - Management clarified that recent outflows were seasonal and expected to rebuild in the second half of the year [55]

Core Insights - Five Star Bancorp reported a net income of $14.5 million for Q2 2025, an increase from $13.1 million in Q1 2025 and $10.8 million in Q2 2024 [1][8][9] Financial Performance - Return on average assets (ROAA) improved to 1.37% in Q2 2025 from 1.30% in Q1 2025 and 1.23% in Q2 2024 [2][12] - Return on average equity (ROAE) increased to 14.17% in Q2 2025 from 13.28% in Q1 2025 and 11.72% in Q2 2024 [2][12] - Pre-tax income rose to $20.1 million in Q2 2025, up from $18.4 million in Q1 2025 and $15.2 million in Q2 2024 [2][12] - Basic and diluted earnings per share were both $0.68 in Q2 2025, compared to $0.62 in Q1 2025 and $0.51 in Q2 2024 [2][12] Loan and Deposit Growth - Total loans held for investment increased by $136.2 million, or 3.76% (15.04% annualized), from Q1 2025 to Q2 2025 [3][7] - Total deposits rose by $158.3 million, or 4.24% (16.94% annualized), during the same period [3][7] - Non-wholesale deposits increased by $191.6 million, or 6.29%, while wholesale deposits decreased by $33.4 million, or 4.84% [6][7] Interest Income and Margin - Net interest income for Q2 2025 was $36.5 million, an increase of $2.5 million, or 7.47%, from Q1 2025 [2][21] - Net interest margin improved to 3.53% in Q2 2025 from 3.45% in Q1 2025 [2][12] Expense Management - Non-interest expense increased by $0.7 million in Q2 2025 compared to Q1 2025, primarily due to higher business travel and promotional expenses [8][9] - The efficiency ratio improved to 41.03% in Q2 2025 from 42.58% in Q1 2025 [10][12] Asset Quality - The ratio of nonperforming loans to loans held for investment increased slightly from 0.05% at the end of Q1 2025 to 0.06% at the end of Q2 2025 [11][27] - The allowance for credit losses was $40.2 million as of June 30, 2025, up from $37.8 million at the end of 2024 [26][28] Market Expansion - The company plans to open a new office in Walnut Creek in Q3 2025, expanding its presence in the San Francisco Bay Area [5][6] - The team in the Bay Area has grown to 34 employees, with deposits totaling $456.9 million as of June 30, 2025 [5][6]

Core Points - Blue Foundry Bancorp reported a net loss of $2.7 million for Q1 2025, consistent with the previous quarter and slightly improved from a loss of $2.8 million in Q1 2024 [1][6][35] - The company experienced a 27 basis points increase in net interest margin, reaching 2.16%, driven by improved yields on assets and reduced costs of liabilities [2][12] - Total loans increased by $42.2 million to $1.63 billion, with significant growth in commercial real estate and consumer loan portfolios [4][22] - Deposits rose by $43.9 million to $1.39 billion, with a notable increase in NOW and demand accounts [6][7][22] Financial Performance - Interest income for Q1 2025 was $22.7 million, a 4.3% increase from the previous quarter, while interest expense decreased by 2.8% to $12.0 million [6][12] - The provision for credit losses was $201 thousand, reflecting an increase in the commercial real estate portfolio [6][29] - Non-performing loans totaled $5.7 million, representing 0.35% of total loans, an increase from 0.33% in the previous quarter [29][36] Loan and Deposit Details - The consumer loan portfolio increased by $34.3 million, while the commercial real estate portfolio grew by $28.5 million [4][22] - Core deposits accounted for 47.6% of total deposits, slightly up from 47.3% at the end of 2024 [22] - Brokered deposits increased to $205 million, supplementing the reduction in retail time deposits [22] Capital and Asset Quality - Tangible book value per share increased to $14.81, while shareholders' equity decreased to $326.7 million due to share repurchases and year-to-date losses [2][22] - The allowance for credit losses on loans was 0.81%, with a coverage ratio of 229.81% for non-performing loans [29][36] - The company's capital ratios remain above the FDIC's "well capitalized" standards [23]